The bank has granted an overdaft facility to ABC company for the period. The overdraft amount is

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The bank has granted an overdaft facility to ABC company for the period. The overdraft amount is 1.500.000. The interest rate is 10% per annum, the overdraft commision is 1% and paid in advanve. It is anticipated that within the first period, (i.e 130 days) the company will benefit from 1.350.000 of the overdraft, and within the next 140 days from 1.425.000. Calculate the effective annual cost if using the overdraft by the company

Posted Date: Feb 08, 2023 05:12 AM

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The bank has granted an overdaft facility to ABC company for the period. The overdraft amount is

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